It’s the Sunday morning brunch rush. A waiter slips on spilled coffee and collides with a customer. Suspecting an injury, you apologize profusely and send them to the hospital. A week later, court papers appear on your desk, naming you and your restaurant liable for the customer’s injuries. Not a problem if you are covered by restaurant liability insurance, which you are, right?
When you’re the owner of a restaurant, claims scenarios such as these are all too familiar. It’s fair to say most restaurant owners assume, or instead hope, it won’t happen to them.
What is Restaurant Insurance?
There’s a saying in the insurance industry; assume the worst and prepare as if it could happen to you. Take our word for it; if it does happen, you’ll be thankful you are covered.
Restaurant Insurance is a policy package that provides coverage for claims related to your professional activities, such as a slip-and-fall injury, bad case of food poisoning, or equipment breakdowns. Unlike a bakery or deli, a restaurant refers to any commercial establishment that has a service component.
What Does Restaurant Insurance Cover?
The foundation of a strong insurance policy for restaurant owners is always Commercial General Liability Insurance (CGL). CGL covers the legal and medical expenses associated with common risks you face as a restaurant owner, most notably bodily injuries (food poisoning included!), as well as damage to a third-party property.
In addition to CGL, a comprehensive Restaurant Insurance policy will usually include the following policies:
- Commercial Property Insurance: covers the cost of repairs due to external damage such as a fire or burst pipes, that you have identified as an ‘insured peril.’ It also covers losses due to theft and vandalism. Work with your broker to determine which perils to insure based on your business and location (e.g., flood or earthquake).
- Equipment Breakdown Insurance: An oven that won’t turn on could spell big trouble for your business. Equipment Breakdown Insurance is a type of Commercial Property Insurance that covers the cost to repair or replace equipment damaged by an internal cause, like a power outage or mechanical breakdown. It also includes income lost due to pausing business operations, as well as inventory, spoiled due to an equipment breakdown.
- Cyber Liability Insurance: covers damages associated with theft, corruption, and disruption of electronic data. It may seem like a nice-to-have insurance policy, rather than a need-to-have, but if it can happen to Chipotle and Pizzeria Locale, it can happen to you.
- Employee Theft Insurance: Of all the scenarios you don’t expect to happen to you, this may be number one. Employee Theft Insurance covers financial loss due to an employee’s actions, such as theft, forgery, or fraud. As much as you trust your employees, it’s always better to be safe than sorry.
- Liquor Liability Insurance: If you serve alcohol at your restaurant, without a doubt, you need to purchase Liquor Liability Insurance. As the name suggests, this policy covers loss or damages due to alcohol-related injuries or accidents. A word to the wise, don’t underestimate the risks associated with an intoxicated customer, as General Liability Insurance will not cover liquor-related claims.
How Much Does Restaurant Insurance Cost?
If you run a restaurant and you know you need insurance, you may be wondering what the cost will be. Much like insurance coverage itself, the cost of Restaurant Insurance varies depending on several factors.
The location of your restaurant, whether or not you serve alcohol, seating capacity, and your experience in the industry, will be taken into consideration when determining the cost of your insurance policy.
Where Do I Sign?
When purchasing restaurant insurance, it is crucial to ensure your coverage is covering you. With insurance, both quality and quantity are of equal importance.
Lawsuits are complicated, but your insurance doesn’t need to be. Our online application makes the process quick and straightforward. Answer a few questions about your restaurant, and you could be insured in as little as thirty minutes.
Just in time for Sunday brunch.
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